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innovation in Services > Week 2 > Flashcards

Week 2 Flashcards

1
Q

The Subject of week 2

A

The service innovation process

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2
Q

Bretani identiefied early succes factors: Nature of the service is

A

Value of the service to the customer Such as:

  • Service innovationess
  • Quality of the service
  • Adaptability
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3
Q

Bretani identiefied early succes factors: Service market characterstics are

A
  • Service market fit
  • Market attractiveness
  • Market competitiveness
  • Extent to which customers demand is satisfied
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4
Q

Bretani identiefied early succes factors: Project synergy is?

A
  • The consistency with the firms technical, human and financial resources
  • The fit with the current line of services and customer experience
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5
Q

Bretani identiefied early succes factors: Service innovation culture is?

A
  • Teamwork
  • Product champions
  • Risk taking
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6
Q

Bretani identiefied early succes factors: NSD process is?

A

Systematicly and an formal NSD process. This is often the most important success factor

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7
Q

What is the stage gate model?

A

Structured model of the innovation process:

  • Stages: that describe the process from idea to product
  • Gates: that describe the go/no-go decisions between stages
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8
Q

What happens at each Go/no-go decision?

A
  • Set of criteria that have to be met
  • People get involved in the decision
  • Decide to go to next stage, skip one or go back in the process
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9
Q

What are the two service innovation models?

A

1) Partial = Describes parts of service innovation model (vb: design= activities needed to create a service blueprint)
2) Translational models = based on product innovation model such as stage gate. Service firms do often not use all stages of the model.

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10
Q

Conclusion on the existing models of the service innovation process?

A
  • Based on product innovation process models
  • There is no generally accepted model of service innovation process
  • Question then is how do they succesfully develop new services?
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11
Q

Service innovation decisions exist out of?

A
  • Service process design
  • Design of interaction with the customer
  • Design of service delivery process
  • Use of technology
  • Degree of customer participation
  • Service employee discretion
  • Degree of standardisation
  • Design of optional features
  • Facility design
  • Demand/capacity planning
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12
Q

Service innovation is often ad hoc: As innovation is not recognized

A
  • Services are shaped through customer- service provider interaction
  • Changes offered to one customer are not recognized as potentially new services for an other customer
  • Knowledge gained by service personal is not shared
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13
Q

Service innovation is often ad hoc: Services can be easily copied

A

So service providers rely on quick responding to competitor innovation

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14
Q

Service innovation is often ad hoc: Service innovation process can be easily stopped

A

As most development costs are variable (labor)

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15
Q

Service innovation is often ad hoc: Service innovation is a process of trail and error

A

When an new service is launched it is improved through incremental improvements

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16
Q

Service innovation is often ad hoc: There is no hard path to follow

A
  • No systematic stage gate process
  • Development process is not often checked upon (sunk costs)
  • Stages overlap
17
Q

Service innovation is often ad hoc: communication about intangibility is hard

A

Because of intangibility communication about concepts is harder

18
Q

Service innovation is an … process?

A

Is an Iteratief process, means repetitieve:

Idea generation > screening > commercial evaluation > idea generation > etc >

Development > testing > development > testing > launch > development > etc

19
Q

Why do studies say it pays to invest in service innovation?

A

1) Formalizing the service process increases the chance on success. Not only for developing new services, but also to handle existing service portfolio (formilising process of when stop them for example).
2) Invest in the interaction with the customer. Service can be copied, execution is harder to copy.
3) Not only service provider has contact with customer but also the supplier often has, so they must know how to deal with them aswel to deliver consistant service.

20
Q

What are radical service innovations?

A

Major innovations: New service for undifined market
Start-up business: New service in market with existing services
New service in market with existing market: self-scan in supermarket

21
Q

What are incremental service innovations?

A 
Service line extension:  Lounge for first class check in
Service improvement: Changing features of existing service
Style change: Example = new layout store
22
Q

how to Design excellent services?

A
  1. Identify and map customer job that you want to improve: Use customer job mapping, use service blueprint to map all interactions with customers and between employees and service systems
  2. Account for all parties influencing the customer experience: map all players involved, map levels of satisfaction across the customer journey
  3. Identify customer pain points and design solutions
23
Q

What are the 4 point to ‘‘Job to be done’’?

(Bettencourt, 2010)

A
  1. Customers higher a service to get the job done. Customers are loyal to the job and select the solution that does that best.
  2. Customers seek solutions for accomplishing distinct steps in getting an entire job done -> Each step is an opportunitie for value creation
  3. Customers use outcomes to evaluate success in getting an job done. Customers use metrics to evaluate the effectiveness of alternative solutions
  4. Customers do have needs related on how they ‘‘consume’’ the service. For example the steps to obtain the service and how to receive its benefits.
24
Q

What does Bitner et al. (2008) Service blueprint show us?

A

Serves as an flowchart that shows the relationship between:

  • Physical evidence of the service
  • Activities of the customer
  • Activities of the contact personnel
  • Activities of the backstage personal
  • Support processes.

See sheet 30.

25
Q

Service innovation is easier then product innovation in:

A
  • Try out new services on small scale
  • Does not require lot of R&D
  • New service can easily be modified during a pilot based on initial response
  • Ideas for new services cannot be patented, so they are easily copied and improved
26
Q

Service innovation is harder then product innovation in:

A
  • Companies must design the entire customer service experience ( service delivery process requires personnel training ect)
  • It requires seamless interface between front and back office. (operational vs contact customer)
  • Responsibilities for developing services are less clear
  • New services are harder to protect then products
  • The innovation process is less systematic; there are no natural milestones to accomplish.

innovation in Services (10 decks)

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